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Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 20,000 ceiling fans and 50,000 table fans

Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 20,000 ceiling fans and 50,000 table fans in the coming year. Product price and cost information includes:

Ceiling Fan Table Fan
Price $66 $12
Unit variable cost $13 $4
Direct fixed cost $20,200 $46,000

Common fixed selling and administrative expenses total $74,000.

Required:

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1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)? Sales mix of ceiling fans to table fans = fill in the blank 9bf3d202800bfeb_1 : fill in the blank 9bf3d202800bfeb_2

2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number.

Break-even ceiling fans fill in the blank 9bf3d202800bfeb_3
Break-even table fans fill in the blank 9bf3d202800bfeb_4

3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement 2. If an amount is zero, enter "0". Enter any negative product margin and losses with a minus sign. Do not round intermediate calculations. Round your final answers to nearest dollar.

Vandenberg, Inc. Contribution-Margin-Income Statement For the Coming Year
Ceiling Fans Table Fans Total

Common fixed expensesContribution marginDirect fixed expensesProduct marginSalesSales

$Sales $Sales $Sales

Less: Common fixed expensesLess: Direct fixed expensesLess: Product marginLess: SalesLess: Variable expensesLess: Variable expenses

Less: Variable expenses Less: Variable expenses Less: Variable expenses

Common fixed expensesContribution marginProduct marginSalesVariable expensesContribution margin

$Contribution margin $Contribution margin $Contribution margin

Less: Common fixed expensesLess: Contribution marginLess: Direct fixed expensesLess: SalesLess: Variable expensesLess: Direct fixed expenses

Less: Direct fixed expenses Less: Direct fixed expenses Less: Direct fixed expenses

Common fixed expensesDirect fixed expensesProduct marginSalesVariable expensesProduct margin

$Product margin $Product margin $Product margin

Less: Common fixed expensesLess: Contribution marginLess: Direct fixed expensesLess: Product marginLess: Variable expensesLess: Common fixed expenses

Less: Common fixed expenses

Common fixed expensesContribution marginDirect fixed expensesOperating incomeOperating lossOperating loss

$Operating loss

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4. What if Vandenberg, Inc., wanted to earn operating income equal to $14,400? Calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. (Hint: Remember to form a package of ceiling fans and table fans based on the sales mix and to first calculate the number of packages to earn an operating income of $14,400.) Round your intermediate calculations and final answers to nearest number.

Break-even ceiling fans fill in the blank d66576038fa0067_1
Break-even table fans

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